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Share-based compensation
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Share-based compensation Share-based compensation
The Company’s equity incentive plans provide for granting various share-based awards to eligible employees, non-employee directors, and consultants of the Company. In addition, the Company offers an employee stock purchase plan to eligible employees.
The Company recognized stock-based compensation expense for all equity arrangements as follows:
Three Months Ended March 31,
20222021
(in thousands)
Cost of revenue:
Subscription
$1,955 $324 
Services
304 77 
Sales and marketing5,859 842 
Research and development3,859 778 
General and administrative4,033 811 
$16,010 $2,832 
Equity Incentive Plans
The maximum number of shares of common stock available for issuance under the 2020 Plan was 24,256,740 shares as of January 1, 2022. As of March 31, 2022, 15,484,707 shares of common stock are reserved for additional grants under the 2020 Plan. As of March 31, 2022, 128,928 shares of common stock are reserved for additional grants under the 2017 Option Plan. All stock options previously granted by the Company were at an exercise price at or above the estimated fair market value of the Company’s common stock as of the grant date. No options were granted during the three months ended March 31, 2022.
Return Target Options
The table below summarizes return target option activity for the three months ended March 31, 2022:
OptionsWeighted‑
Average
Exercise
Price		Weighted‑
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 20213,687,664 $6.75 6.8$115,278 
Granted
— — — 
Exercised
— — — 
Forfeitures
— — — 
Outstanding, March 31, 20223,687,664 $6.75 6.5$103,477 
Options exercisable at March 31, 2022— $— — $— 
Vested or expected to vest at March 31, 2022— $— — $— 
The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the optionholders had all optionholders exercised their options on the last day of the period. No return target options vested during the three months ended March 31, 2022. There was approximately $33.0 million of unrecognized compensation expense related to these return target options as of March 31, 2022.
Service-Based Options
The table below summarizes the service-based option activity for the three months ended March 31, 2022:
OptionsWeighted‑
Average
Exercise
Price		Weighted‑
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 20211,643,266 $5.68 6.1$53,129 
Granted
— — — 
Exercised
(211,200)5.67 6,725 
Forfeitures
— — — 
Outstanding, March 31, 20221,432,066 $5.68 5.8$41,716 
Options exercisable at March 31, 20221,270,476 $5.50 5.7$37,244 
Vested or expected to vest at March 31, 20221,432,066 $5.68 5.8$41,716 
The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the optionholders had all optionholders exercised their options on the last date of the period. Service-based options vest over four years with 25% vesting one year after grant and the remainder vesting ratably on a quarterly basis thereafter. The total fair value of service-based options vested during the three months ended March 31, 2022 was $0.2 million. There was $0.8 million of unrecognized compensation expense related to service-based options that is expected to be recognized over a weighted-average period of 1.4 years as of March 31, 2022. The Company issues new shares when service-based options are exercised. All service-based options outstanding under the Company’s option plans have exercise prices equal to the fair value of the Company’s stock on the grant date. All awards expire after 10 years.
Restricted Stock Units
RSU activity for the three months ended March 31, 2022 was as follows:
UnitsWeighted-Average Grant Date Fair Value (per share)
Outstanding, December 31, 20216,890,938 $31.59 
Granted1,516,117 31.60 
Vested(22,191)37.37 
Forfeited(165,054)31.17 
Outstanding, March 31, 20228,219,810 $31.58 
RSUs under the 2020 Plan generally vest ratably over four years. There was $224.5 million of unrecognized compensation expense related to unvested RSUs that is expected to be recognized over a weighted-average period of 3.4 years as of March 31, 2022. The total fair value of RSUs vested during the three months ended March 31, 2022 was $0.8 million.
Long-Term Incentive Plan
In the third quarter of 2021, the Company offered employees with LTIP grants the opportunity to convert those awards into RSUs under the 2020 Plan. Upon conversion, 50% of the RSUs vested immediately and the remaining 50% vest on the one year anniversary of the grant date, provided the employee remains continuously employed by the Company through the vesting date. All employees elected to convert their outstanding LTIP grants into RSUs, resulting in grants totaling 413,234 shares.
The conversion of the previously outstanding LTIP grants into RSUs resulted in the recognition of $1.6 million of stock-based compensation expense during the three months ended March 31, 2022. The expense on the unvested RSUs is recognized on a straight-line basis over the vesting period.
Employee Stock Purchase Plan
As of March 31, 2022, the Company withheld, at the employees’ request, $2.9 million of eligible employee compensation, which is included in accrued liabilities in the condensed consolidated balance sheet, for purchases of common stock under the 2021 ESPP.
As of March 31, 2022, 4,194,260 shares of common stock are reserved for future issuance under the 2021 ESPP. No shares of common stock were issued under the 2021 ESPP during the three months ended March 31, 2022. There was $0.2 million of unrecognized compensation expense related to the 2021 ESPP that is expected to be recognized over a period of one month as of March 31, 2022.